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Student's Book Form Five

who shares a common interest. The independence.
membership price is maintained low Possess some distinct set of interests:
so that everyone can participate in Co-operative organisations operate in a
co-operative organisations and benefit small geographic area, and members have a
from them. At the same time, any member stronger sense of shared interests. Members
of a co-operative organisation who wishes can communicate with one another work
FOR ONLINE READING ONLY
to leave is free to do so. together and handle organisation activities

Promotes democracy: All members of more effectively.
co-operative organisations have equal Attract government assistance: The
rights and power regardless of their shares. government can provide full assistance to
Co-operative organisations allow anyone co-operative organisations to encourage
to join, leave, choose a leader or be chosen their growth. Assistances given by the
as a leader. government may include offering low-
Fair distribution of surplus: The surplus interest loans, as well as subsidies and
generated by co-operative organisations other benefits.
are distributed amongst members fairly; The elimination of middlemen: Co-operative
as a result, everyone in the co-operative organisations have direct contact with both
organisation benefits. Furthermore, producers and final consumers. As a result,
co-operative organisations benefit the they are not reliant on middlemen and
community since a portion of the surplus, may save the earnings that the middlemen
not exceeding ten per cent can be used to enjoy.
improve the welfare of the community
in which the co-operative organisation is Provide credit to its members: People have
based. been liberated from informal money lenders
by co-operative groups. Informal money
Limited liabilities: A co-operative lenders charge large interest rates, and the
organisation members’ liability is peoples’ income is largely utilised to pay
restricted to the amount of shares they have the interest. Co-operative organisations
contributed. A co-operative organisation have benefited large population by
member cannot be held individually providing loans at lower interest rates to
accountable for the organisation’s liabilities. their members.

Going concern: A co-operative organisation Contribution to agricultural development:
continues to operate for a long time The government’s efforts to enhance
regardless of the death, insanity, or agricultural production have been
insolvency of any of its members. This complemented by co-operative
is because those events have no bearing organisations. They have enhanced people’s
on its continuation as they are treated lives in the rural areas and they are always
separately from co-operatives that assumes accessible for help.

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